CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

A confidence interval was used to estimate the proportion of American new car owners who purchased domestic cars. A random sample of 58 new car owners generated the following 90% confidence interval: 0.376, 0.426.

Based on the interval given, does the mean population proportion of new car owners who purchased domestic cars exceed 39%?
A. Yes. The researcher has 90% confidence in the result.
B. The researcher cannot conclude that the mean exceeds 39% at the 90% confidence level.
C. No. The researcher has 90% confidence in the result.

User Contributed Comments 7

User Comment
danlan m=0.401, the researcher knows the mean exceeds 37.6% at the 90% confidence level.
iceluke he is just sure that the value is in between with 90%, but not that the mean is greater or not
joe3 Good question!
octavianus I think that it is important that the question refers to the "mean population" and not the mean SAMPLE.

Maybe this explains why the researcher cannot make a conclusion.
sergashev good one!
aakash1108 nice!
clafuente Hi, someone can help me explaining with more details please?

Thanks so much
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